Well, Sgt. Kilroy shows up to murder Lindsay so he can have Verna for himself. He is just about to shoot Lindsay when the latter starts to wind his time-traveling watch ahead two hours forward.

So, either Lindsay sets his watch forward two hours and discovers he's been shot dead two hours ago by Kilroy or he is ABOUT to set his watch forward and the scene ends just before Kilroy shoots him -- then we jump forward two hours to hear Kilroy informing Verna that he shot Lindsay two hours ago.

So Kilroy, who knows about the watch, keeps an eye on the body for two hours to make sure Lindsay didn't get the watch set ahead just before he was shot? In which case, his corpse would suddenly come to life?